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This fact sheet by WWF South Africa explains the purpose, design, and potential impacts of the South African carbon tax announced in the 2018 budget speech. It outlines how the tax aims to shift costs from society to polluters to drive a transition toward a low-carbon economy, while expressing concern that current tax rates and allowances are too low to effectively incentivize emission reductions.

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  • The South African government announced a carbon tax to take effect in January 2019, designed to 'put a price' on carbon emissions and shift the social costs of pollution from the public to the companies responsible for the emissions.
  • The tax is intended to reorient the economy by encouraging investments in low-carbon products and services, creating jobs in green industries, and gradually reducing the size of the coal, oil, petrol, and diesel sectors.
  • The tax applies to companies and state-owned enterprises emitting above a certain threshold, with an initial rate of R120 per tonne of carbon emissions. The rate is set to increase by inflation plus 2% until 2022, after which it will increase by inflation annually.
  • WWF South Africa argues that the current tax design is ineffective because tax allowances (ranging from 60% to 95%) reduce the actual rate to between R6 and R48 per tonne. WWF estimates that the top 10 emitting companies would only pay 0.1% to 0.5% of their turnover, leading them to pass costs to customers rather than reducing emissions.
  • WWF recommends a more meaningful tax rate between R162 and R433 per tonne, a reduction in the 'basket of allowances', and the use of tax revenues for pro-poor programs in transport and energy, such as increased free basic electricity and water allowances.

Cite the original document

APA
WWF South Africa (n.d.). wwf_carbon_tax_qanda_final-0d4a0eb6b0e02e9e.pdf. https://wwfafrica.awsassets.panda.org/downloads/wwf_carbon_tax_qanda_final.pdf
Chicago
WWF South Africa. wwf_carbon_tax_qanda_final-0d4a0eb6b0e02e9e.pdf. n.d. https://wwfafrica.awsassets.panda.org/downloads/wwf_carbon_tax_qanda_final.pdf.
Wikipedia
{{cite report |author=WWF South Africa |title=wwf_carbon_tax_qanda_final-0d4a0eb6b0e02e9e.pdf |url=https://wwfafrica.awsassets.panda.org/downloads/wwf_carbon_tax_qanda_final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{wwfsouthafricandwwfcarbontaxqandafinal0d4a0eb6b0e02e9epdf, author = {{WWF South Africa}}, title = {{wwf\_carbon\_tax\_qanda\_final-0d4a0eb6b0e02e9e.pdf}}, institution = {WWF South Africa}, url = {https://wwfafrica.awsassets.panda.org/downloads/wwf_carbon_tax_qanda_final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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